Property developer Ayala Land Inc. (ALI) is investing P17.5 billion to upgrade and build malls, a move aimed at capturing the evolving lifestyles of a burgeoning Philippine middle class.
The investment reflects a significant increase from the P13 billion originally announced in 2024 for its mall redevelopment initiative.
ALI senior vice president and head of leasing and hospitality Mariana Zobel de Ayala told a recent media briefing the company’s transformation program includes four malls.
“This extensive transformation is far more than just renovation; it’s about creating spaces where life happens, where memories are made, and one that aligns perfectly with Ayala Land’s long-term growth story of building places that people love,” Zobel de Ayala said.
The expanded budget allows ALI to extend its transformation efforts to more properties, including Ayala Malls Abreeza in Davao, Ayala Malls Marquee in Pampanga, Ayala Malls Cloverleaf and Ayala Malls Fairview Terraces.
“These are essential parts of the estates we build, and essential parts of living your life,” Zobel de Ayala said.
“In our country, malls are important spaces that bring people together, support entrepreneurs and businesses, and serve as venues for everyday experiences and shared benefits,” she said.
Upgrades will include more al fresco spaces, improved pedestrian flow, new retail concepts, co-working amenities, and energy-efficient infrastructure. This forms part of the company’s vision to reposition malls as “third spaces” blending commerce, culture, and community.
“What we’re doing with Ayala Malls goes beyond reimagination,” Zobel de Ayala said. “It’s a strategic pillar of Ayala Land’s broader approach strategy, focused on building places that people love.”
The investment comes as the Philippines’ gross national income per capita reached $4,470 in 2024, just $26 shy of the World Bank’s upper-middle-income classification threshold. Inflation has also eased, averaging 1.8 percent in the first half of 2025, below expectations.
These economic indicators are a key reason for the property firm’s confidence in physical retail. A growing middle class is expected to drive demand for enhanced shopping, dining, and lifestyle experiences, not only in central business districts but also in fast-developing communities.
“Over the next five years, we will continue to expand our network,” Zobel de Ayala said.
“We have plans to add an additional 700,000 new square meters of leasable space, developing new Ayala Malls in key growth areas across the country,” she said.
The investment is already showing returns. In the first quarter of 2025, Ayala Malls posted P5.7 billion in revenue, a 4-percent increase year-on-year. Malls not under renovation recorded a strong 14 percent quarter-on-quarter growth, contributing to an 11-percent gain across the broader portfolio.
As the country’s economy stabilizes and household incomes rise, ALI views mall development as both a business opportunity and a contribution to national progress.
“This is hopeful and encouraging — that our country will continue to progress forward and remain on an upward economic trajectory,” said Zobel de Ayala. “With a resilient and expanding economy, we are confident in the long-term potential of the retail sector.”
